The Federal Reserve raised the federal funds target range by 25 basis points to 3.75%-4.00% on Wednesday, marking its first rate increase since 2023.
In its policy statement, the Federal Open Market Committee said, “inflation remains elevated. Today’s policy action will support a timelier return to the Committee’s 2 percent goal.”
The decision was unanimous.
The updated dot plot showed the median official projecting a year-end 2026 fed funds rate of 4.1%, up from June’s 3.8% and implying one additional hike by December.
The 2027 median moved to 4.1% from 3.6% in June.
Fed Chair Kevin Warsh is slated to hold the press conference at 2:30 p.m. ET.
This is a developing story…
